1. Soybeans

2. Why is the demand for soybeans increasing? Increasing population
Demand for meat, esp. in EEs
Analog products
Biofuel
Uses in industrial production

3. Why is Brazil a good destination for FDI? Natural resources
Arable land, labor supply, consumer mkt
Tropical climate
Multiple crops/yr= higher yield
Demand for ag inputs
Room for growth in food sector
Soybeans/

4. Why is Brazil a good destination for FDI? (cont.) Stable democracy
< fear of nationalization
Transparency
Ease of doing business
Financial incentives
Fiscal policies, tax incentives, low-risk
US, China access to EU mkt
Lax sewage laws
Facts-About-Soybeans/

5. What advantages does Brazil have over the U.S. as a soybean producer?
Infrastructure
Streamlined v. scattered

6. What role do subsidies play in global production of soybeans?
Interfere with trade
Give GN advantage
US, EU, Japan
Crop insurance
MNCs benefit most
Overproduction in U.S.
↑ value-added foods  changed diets

7. What concerns have been raised regarding increased soybean production in Brazil?
Environmental
Amazon v. cerrados
BR’s changes in 1990s
MNCs play to consumers
GMOs
Land ownership issues
Leasing
Outright sale
Land rights/reform

8. ¤ What soybean issues relate to II & IF?/ Recap What FDI involves
What MNCs look for as good destinations
Incentives states offer
Why EEs draw more FDI
Brazil
Big economy
Big population, esp. young
↑ consumer class
Resource rich